Gold imports slide 51 pc to USD 2.7 bn in April-May

Sunday, Jul 3, 2016,12:15 ISTBy Metrovaartha AAA

New Delhi | Gold imports fell by about 51 per cent to USD 2.7 billion in April-May this fiscal, which is expected to keep a lid on the current account deficit. The sliding prices of the precious metal in both global and domestic markets are seen as a contributory factor for the plunge. Gold imports stood at USD 5.55 billion in April-May 2015.

The in-bound shipments contracted for the fourth consecutive month in May by 39.14 per cent at USD 1.47 billion, according to Commerce Ministry data. The contraction in the imports helped narrow trade deficit to USD 6.27 billion last month. The deficit was at USD 10.4 billion in the year-ago period.

India is the largest importer of gold in the world and the imports mainly take care of demand of the jewellery industry. India’s CAD narrowed to 1.3 per cent of GDP in the third quarter of 2015-16 as against 1.5 per cent in the same period of the previous year, mainly on account of a lower trade deficit.